When you hear the name Liberty Mutual, you’re likely to think of the company’s catchy jingle and car insurance.
While Liberty Mutual may be well-known for products like home and auto insurance thanks to their memorable marketing, they’re also a major provider of life insurance.
Liberty Mutual is highly regarded in the insurance industry, but is it the right company for your life insurance needs, too?
In this review, we’ll take a look at the company’s history, financial health, and what life insurance products they have to offer to help you decide.
Our Liberty Mutual Life Insurance Review
Liberty Mutual has over 100 years of experience in the U.S. insurance market.
The firm first opened its doors in 1912 to meet the demand for workers’ compensation insurance in Massachusetts.
While the company quickly began to expand its insurance policy options, it wasn’t until the 1960s that it first started offering life insurance to policyholders.
At present, Liberty Mutual remains headquartered in Boston, Massachusetts.
The Fortune 100 company employs over 50,000 staff members throughout the United States and operates a range of additional subsidiaries in countries around the world.
As a mutual company, Liberty Mutual is not a publicly-traded company and does not have a traditional shareholder structure.
Instead, the company’s policyholders are the shareholders of the company.
This ownership structure is exclusive to the United States— policyholders do not own subsidiaries or Liberty Mutual companies overseas.
Awards and Accolades
As one of the most prominent insurance providers in the United States, Liberty Mutual has received several awards and accolades in recent years.
Some of Liberty Mutual Group’s most significant awards include:
PEOPLE Magazine Companies That Care 2019: Liberty Mutual ranked as #37 in the country for 2019 thanks to its concern for both local communities and employees.
50 on Fire 2016 from BostInno: Liberty Mutual was recognized for its Strategic Ventures program, which provides $150m in funding for innovative startups around the nation.
Military Friendly Employer: As members of the United States Military transition into civilian life, many find it hard to integrate into large corporations. Liberty Mutual offers professional opportunities to these veterans.
Great Place to Work US 2018: Based on a range of metrics, Liberty Mutual was determined to be a company offering an excellent professional environment.
The Best Employers for Women 2019 from Forbes: Liberty Mutual has received recognition from Forbes Magazine for its commitment to empowering women in the workplace.
Financial Strength & Ratings
It’s essential to work with an insurance company with the financial stability to honor your policy.
If an insurance company goes bust, it won’t be able to pay out your claims— this has been a harsh reality for policyholders whose insurers have gone bankrupt.
One of the critical indicators of an insurance company’s viability is its financial details.
At the end of 2018, Liberty Mutual Group reported over $125b in consolidated assets. In the same year, the company declared over $105b in consolidated liabilities. The company’s overall consolidated revenue for 2018 was $41.5b.
To gain a better understanding of the company’s stability, we’ve also compiled a list of Liberty Mutual Group’s financial health ratings from the world’s top rating agencies:
- A.M. Best: A (Excellent)
- Fitch: A- (Strong)
- Moody’s: A2 (Good)
- Standard & Poor’s: A (Strong)
- Better Business Bureau: A-
Liberty Mutual’s reputation with rating agencies is exceptionally favorable.
These indicators, combined with the financial strength of the company, offer a promising picture for the future.
Though the company used to sell variable universal life insurance products, they are now focusing only on the products below.
Those seeking life insurance policies from Liberty Mutual will have two primary options:
Here’s a closer look at what those policies have to offer.
Term life insurance is perfect for consumers seeking financial protection for a specific period.
In most instances, you will only be paid if a death occurs during the term specified in the policy. Many policyholders enjoy term life insurance because it costs less money.
In addition, term insurance often offers flexible options that allow you to customize your policy. At Liberty Mutual, this is undoubtedly the case.
Liberty Mutual offers a wide range of term lengths— you can choose between 10, 15, 20, and 30-year terms.
Liberty Mutual’s term flexibility allows you to choose a policy that suits you and your family’s needs.
With Liberty Mutual Life Insurance Company, you can also convert your current term policy to a new policy.
Unlike many other insurance providers, Liberty Mutual also offers policyholders the ability to continue coverage after the end of the term.
If you choose a term insurance policy that ends during your lifetime, you don’t have to lose the associated benefits. You can also tack on a range of riders and add-ons to customize your plan.
In addition, all Liberty Mutual term life insurance policies guarantee level premiums for the duration of the policy.
If you’re interested in a life insurance policy that doesn’t have term limits, a whole life insurance policy is another standard insurance product.
A whole life insurance policy can also allow policyholders to access cash value via loans and other financial instruments.
If you’re seeking a guaranteed death benefit for your family, this type of policy is suitable.
At Liberty Mutual Life Insurance Company, whole life insurance policies also offer a wide range of customizations.
You can add riders and other features to increase the benefits associated with your policy. Policyholders can opt for a minimum guaranteed interest rate within their policy as well.
Other potential benefits include a tax-deferred cash value, death benefits that offer more than your first premium, full premium return guarantees, and more.
In some cases, you may be able to avoid a medical exam when applying for a whole life insurance policy at Liberty Mutual Life Insurance Company.
Liberty Mutual offers one of the most customizable whole life insurance products in the industry.
While Liberty Mutual no longer offers universal life insurance policies, the insurance provider does offer annuities which give consumers access to cash during retirement.
Annuities are a popular financial product which allow you to defer taxes until your retirement, meaning money placed in an annuity is tax-free until you begin receiving funds from the product.
Fixed annuities at Liberty Mutual allow clients to make a lump-sum payment that returns income throughout their retirement years. Some individuals see this as an investment with less exposure to financial markets.
At Liberty Mutual Life Insurance Company, you can customize your fixed annuity to have a fixed interest rate over a five-year period.
You also can tap into your cash in the case of a medical emergency or crisis, which may cover medical-related expenses for your spouse, too.
Alternatives to Liberty Mutual
Liberty Mutual is one of many great companies you can partner with for life insurance.
Take a look at a few of the alternatives below as you shop around for the right policy.
- Banner Life: Liberty Mutual’s term life policies can get expensive for certain demographics. If you’re in the market for really affordable term life insurance, Banner Life is one of your best bets, even if you aren’t in the best health.
- Protective: If you’re drawn to the credibility of Liberty Mutual but need a universal life policy, take a look at Protective. They offer the best universal product out there and have the same type of excellent reputation as Liberty Mutual.
- Northwestern Mutual: Northwestern Mutual is a great alternative if you’re exploring more whole life options. The company is known for offering some of the most advantageous whole life policies on the market.
What We Like About Liberty Mutual
Every insurance provider has advantages and disadvantages associated with their services.
Let’s explore the key benefits associated with choosing Liberty Mutual for your next life insurance policy:
- Policy Customization Options: If you’re seeking a custom policy with features that suit your particular requirements, the extensive range of riders and add-ons can help you build an individualized life insurance product.
- Strong Financial Health: Not only does Liberty Mutual have a large number of assets under its control, but it also has excellent economic viability ratings from some of the world’s leading rating agencies.
- No Exam Options for Term Policies: If you’re looking for a short-term insurance policy, you may be able to apply without undertaking a medical exam. It’s best to speak to a local agent about your eligibility for this type of policy.
- Online Features and Applications: Liberty Mutual offers policyholders an online account portal where you can track all policies and claims. You can also start an application for a policy directly on the company’s life insurance website.
- Wide Range of Other Insurance Policies: You’ll find a wide range of personal and commercial insurance options, including auto insurance, motorcycle insurance, identity theft insurance, home insurance, boat insurance, and a variety of other products.
What We Don’t Like About Liberty Mutual
No insurance provider is free of drawbacks.
Here are some of the disadvantages associated with Liberty Mutual’s life insurance options:
- Known for Expensive Policies: Liberty Mutual is known for offering expensive insurance policies. If you’re looking for cheap life insurance, it may be worth comparing Liberty Mutual against the other providers referenced above.
- Medical Exams in Certain Instances: If you’re hoping to bypass the medical exam process, you might be out of luck at Liberty Mutual Insurance Company. The provider often requires a medical exam, especially if you’re seeking long-term or whole coverage.
- Certain Products Off Limits in Some States: Liberty Mutual Group has a strong presence in all 50 states, but certain types of policies have geographical restrictions. You’ll need to speak with Liberty Mutual or a local agent to assess if you’re eligible for its life insurance options or use their online quoting tool.
Liberty Mutual is a company you can depend on, with strong financial ratings across the board, a whole host of awards and accolades, and a wide range of insurance products.
If you’re looking for simple straightforward life insurance from a well-known provider, Liberty Mutual could be the right choice for you, especially if you already have other policies in place with them.
On the other hand, if your goal is to secure the lowest rates or undergo the simplest underwriting process, you may want to look elsewhere.
Your best bet, as always, is to compare all of the options before you.
Get quotes from top providers to save the most money and choose the right policy for your needs.